Posted by **Anonymous** on Saturday, August 10, 2013 at 2:47pm.

Problem 12.24

Your answer is incorrect. Try again.

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 94 percent as high if the price is raised 8 percent. Chip’s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.)

## Answer This Question

## Related Questions

- Finance - Chip’s Home Brew Whiskey management forecasts that if the firm sells ...
- Finance - Chip’s Home Brew Whiskey management forecasts that if the firm sells ...
- finance 571 - Chip’s Home Brew Whiskey management forecasts that if the firm ...
- finance - Chip’s Home Brew Whiskey management forecasts that if the firm sells ...
- math - Chip’s Home Brew Whiskey management forecasts that if the firm sells each...
- FIN - Question 2 Archer Daniels Midland Company is considering buying a new farm...
- Finance - 1. Briarcrest Condiments is a spice-making firm. Recently, it ...
- Finance - Can you show me how to solve these problems? PLEASE!!! I can't figure ...
- english - Jim sucked and sucked at the jug, and now and then he got out of his ...
- math - I'm having problem understanding this answer. Product A is a 12-ounce ...

More Related Questions